New Delhi, Jan. 29 -- For India, the January-March quarter is a critical period marked by major data releases (such as revised and advance GDP estimates), key policy decisions (the Union Budget and the last monetary policy review of the year), and significant documents (the Economic Survey). However, given an uncertain global environment and limited policy flexibility, the current quarter will also bring difficult trade-offs as policymakers strive to balance competing priorities. Here are some of the key dilemmas they face:

1. Growth or inflation?

The shockingly low GDP growth of 5.4% for July-September 2024 has raised concerns about a potential cyclical downturn, primarily driven by weakening consumption demand. A mix of slowing wages,...